A TOTAL of 16 claims amounting to half a million Singapore dollars were filed against e-wallet providers in just over a month, with a median claim amount of S$1,246, and an average claim amount of S$31,426.
These claims include disputes arising from fraud or scams, delays or failure in customer service, as well as unauthorised transactions following the loss of linked cards.
In a statement on Tuesday (Jan 21), the Financial Industry Disputes Resolution Centre (Fidrec) said that of the 16 claims received, one was resolved during the early resolution stage, while 10 are currently in the early resolution stage.
The remaining five claims have completed early resolution without a settlement and are being reviewed for eligibility for handling by the centre. Eligible claims that are accepted for handling will then proceed for mediation.
With the implementation of the shared responsibility framework on Dec 16 last year, e-wallet providers are required by the Monetary Authority of Singapore to subscribe to Fidrec, alongside banks, finance companies and credit bureaus, and more.
Consequently, consumers with disputes against e-wallet providers arising from Dec 16 onwards can file their claims at Fidrec for resolution.
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E-wallet providers refer to payment institutions which provide account issuance services for stored-value electronic wallets. They fall under the category of “payment service providers”, which is a new category of financial institutions required to subscribe to Fidrec.
34 e-wallet providers have subscribed to date, including Revolut, Wise, YouTrip and Instarem, among others.
Fidrec noted that the inclusion of e-wallet providers as subscribers is “an important development”, which enhances consumer protection in the rapidly growing and evolving digital payments ecosystem.
“It allows consumers to seek resolution for complaints at Fidrec if an e-wallet provider fails to satisfactorily resolve the complaint within four weeks.”
Consumers must first attempt to resolve their dispute with the e-wallet providers. They can then bring their complaints to the disputes resolution centre if there is no resolution after four weeks.
This would also encourage e-wallet providers to establish clear protocols for internal complaints handling, thus fostering greater trust and accountability with their customers, said Fidrec.
Fidrec’s chief executive officer Eunice Chua shared a few tips for consumers to avoid disputes or minimise loss pertaining to e-wallets.
These include only topping up the e-wallet with the required amount to minimise exposure to fraud and scam risks, taking steps to safeguard cards when travelling, as well as monitoring transaction notifications to promptly report unauthorised deductions.
Chua also advised consumers not to assume that all financial institutions are Fidrec subscribers, and to verify this on the centre’s website.
